Houston is part of the Texas deregulated energy market, which means as a home or business owner, you can choose your electricity providers instead of being tied to a single power company.
As of May 2025, over 300 electricity plans are available in the Greater Houston area, offering various features and rate types. On top of that, more than 140 electricity companies offer energy plans in Texas.
Choosing the best electricity rates in Houston can feel like trying to navigate the wild west. We recommend starting by looking for a plan with an affordable fixed rate during its entire contract term can lead to major power bill savings over time.
In this guide, This Old House reviews the top electricity providers in the Bayou City, comparing their plan options and customer benefits. We also provide buying tips to help you find the best electricity rates for your home.
Current Houston Electricity Rates
The electricity plans with the lowest advertised rates in Houston don’t always translate into low power bills. Many Houston energy providers offer low rates if your home electricity usage meets certain conditions, but can otherwise charge very high rates.
For example, some plans include usage-based bill credits when your consumption reaches a specified value, such as 1,000 kilowatt-hours (kWh) or 2,000 kWh per month. If your usage meets the threshold, you’ll enjoy ultra-cheap energy prices. However, your energy rate can skyrocket if your usage strays outside the required kilowatt-hour levels.
You’ll also find electricity plans with tiered rates based on your usage level, or time-of-use rates that vary depending on the hour. However, all these plan types can lead to unpredictable monthly bills, since your electricity rate varies depending on your usage.
When comparing energy plans in Houston, we recommend options with fixed rates, transparent pricing and no hidden fees or pricing tricks. Below, you can compare bill credit and fixed-rate plans from top-rated power companies in Houston.
| Provider | Plan name | Term | Rate (¢/kWh) |
|---|---|---|---|
|
Frontier Utilities |
Frontier Saver Plus 12 |
12 months |
10.6 |
|
Express Energy |
Flash 12 |
12 months |
10.7 |
|
Gexa Energy |
Gexa Eco Saver Plus 12 |
12 months |
10.7 |
|
Express Energy |
Flash 24 |
24 months |
10.7 |
|
4Change Energy |
Maxx Saver Select 24 |
24 months |
10.7 |
|
4Change Energy |
Maxx Saver Select 12 |
12 months |
10.7 |
|
Gexa Energy |
Gexa Eco Saver Plus 24 |
24 months |
10.7 |
|
Frontier Utilities |
Frontier Saver Plus 24 |
24 months |
10.7 |
|
Cirro Energy |
Simple Bill Credit 24 |
24 months |
10.9 |
|
Cirro Energy |
Simple Bill Credit 12 |
12 months |
10.9 |
|
Frontier Utilities |
Frontier Budget Saver 12 |
12 months |
16 |
|
Tri-Eagle Energy |
Simple Savings 12 |
12 months |
15.2 |
|
4Change Energy |
One Rate 24 |
24 months |
16.4 |
|
4Change Energy |
One Rate 12 |
12 months |
16.1 |
|
Veteran Energy |
Secure 12 |
12 months |
15.9 |
|
Gexa Energy |
Gexa Light Saver 12 |
12 months |
16.9 |
|
Frontier Utilities |
Platinum 12+ |
12 months |
17.9 |
|
TXU Energy |
Simple Rate 12 |
12 months |
18.6 |
|
Payless Power |
12 Month – Prepaid |
12 months |
18 |
|
Gexa Energy |
Gexa Eco Saver Advantage 12 |
12 months |
20.5 |
Rates updated as of May 2025, based on the CenterPoint Energy service area for the ZIP code 77084. The rates displayed are for a home with an average monthly usage of 1,000 kWh.
Average Electricity Rates in Houston
The average electricity rate in Houston is 14.7 cents per kWh in May 2025, based on rates from 138 electricity plans available in ZIP code 77084, the most populated in Houston.
For comparison, the statewide average rate in Texas is 14.89 cents per kWh, according to the U.S. Energy Information Administration (EIA).
Texas electricity providers publish rates at three standard consumption levels: 500 kWh, 1,000 kWh and 2,000 kWh per month. These benchmarks are useful when comparing plans based on your home size and expected energy consumption.
| Usage Level | Typical Home Size | Average Rate (May 2025) | Estimated Monthly Bill |
|---|---|---|---|
| 500 kWh | Less than 1,000 square feet | 15.3 cents per kWh | $77 |
| 1,000 kWh | 1,000–2,000 square feet | 14.5 cents per kWh | $145 |
| 2,000 kWh | More than 2,000 square feet | 14.2 cents per kWh | $284 |
If you track the Houston electricity market, you will typically find the cheapest electricity rates in Houston during the spring and fall. This happens because the mild weather reduces overall demand from air conditioners and space heaters.
On the other hand, rates tend to peak during summer, when homes and businesses are using air conditioners at full capacity. During winter, space heating has a similar but less drastic effect, as approximately six in 10 homes rely on electric heating systems, according to the EIA.
What Makes a Good Rate in Houston?
A “good” electricity rate is not just affordable, but also predictable and transparent. For example, we don’t recommend an energy plan that advertises 10 cents per kWh, but charges 20 cents per kWh — or more — if you don’t meet a minimum usage threshold.
The most affordable fixed-rate plans in Houston typically offer rates under 17 cents per kWh, but you may find options as low as 14 to 15 cents per kWh during spring or fall.
Because of energy deregulation, Houston electric rates don’t just change with seasonal trends, but also with the natural gas market. Texas generates around 50% of its electricity from this fossil fuel, according to the EIA. When global gas prices spike, Texas electricity rates also tend to increase.
When you’re looking for the best electricity rate in Houston, here are some common “red flags” to watch out for:
- Confusing rate structures: Avoid complex pricing formulas instead of straightforward rates per kilowatt-hour.
- Wide ranges in price: Be wary of drastic rate differences across usage levels — for example, 10 cents per kWh at 1,000 kWh and 22 cents per kWh at 500 kWh.
- Free electricity plans: Double-check your usage before signing up for free nights or weekends plans. These plans often charge over 27 cents per kWh during paid hours.
- Added fees: Watch out for additional fees, including minimum usage fees or high base charges, such as $20 to $30 per month.
Top Recommended Electricity Companies in Houston
According to our February 2025 survey of 1,600 Texans living in deregulated areas, TXU Energy, Reliant Energy and Gexa Energy are among the most popular providers from our respondents living in Space City. However, you can choose from among dozens of energy companies in the Houston area.
As of May 2025, the Public Utility Commission of Texas (PUCT) lists electricity plans from 38 Houston electricity companies on its official Power to Choose website. However, not all providers publish plans on the PUCT platform, meaning the total number of electricity companies in Houston is closer to 50.
These light companies sell electricity plans in Houston but don’t transmit power to you. A utility company called CenterPoint Energy maintains the Houston area’s power grid and delivers power to homes and businesses. CenterPoint doesn’t sell electricity directly but applies delivery charges to your monthly bills, regardless of your chosen provider.
Below, you can compare electricity plans from six top-rated providers in Houston. All these plans offer fixed rates below 17 cents per kWh, with no hidden fees or “pricing gimmicks.” Additionally, all these plans lock your rate for a 12-month contract term, but longer options such as 24 or 36 months are also available:
| Provider | Plan | Our Score | Electricity Rate | Additional Features |
|---|---|---|---|---|
| Reliant Energy | Secure Advantage 12 | 4.9/5 | 18.1 cents | Straightforward rates |
| TXU Energy | Simple Rate 12 | 4.9/5 | 18.6 cents | No confusing gimmicks |
| TriEagle Energy | Simple Savings 12 | 4.8/5 | 15.2 cents | Flexible cancellation fee with predictable energy costs |
| 4Change Energy | One Rate 12 | 4.7/5 | 16.1 cents | 100% green energy option and flexible cancellation fee |
| Gexa Energy | Gexa 12 | 4.6/5 | 16.1 cents | Basic fixed-rate plan |
| Rhythm Energy | Digital Discount 12 | 4.5/5 | 15.6 cents | 100% green energy, $5.00 monthly autopay discount and flexible cancellation fee |
Understanding Houston’s Energy Market
Before 2002, Texas had traditional electric companies that controlled all stages of the power supply: generation, transmission, distribution and retail sales. As a result, home and business owners had no choice but to buy electricity from their local utility provider. However, Texas deregulated its electric sector in 2002, breaking up power monopolies into companies with specific roles, while opening the market to competition.
- Power generators: Companies dedicated exclusively to electricity production
- Transmission and distribution utilities (TDUs): “Poles and wires” companies that operate and maintain the power grid
- Retail electricity providers (REPs): Companies that sell electricity plans directly to homes and businesses
In Houston, the utility company for most of the 20th century was Houston Lighting & Power (HL&P). After deregulation, HL&P was divided into an electricity provider called Reliant Energy, a utility company called CenterPoint Energy and a generation company called Texas Genco. Thanks to the general success of deregulation, you now have dozens of light companies to choose from.
In the Lone Star State, the Electric Reliability Council of Texas (ERCOT) manages the flow of electricity. Put in place to ensure a consistent, stable supply, ERCOT wrangles all the power plants, utility companies and electricity providers to ensure your lights come on when you flip the switch.
In this deregulated market, electricity providers compete for residential and commercial customers. Power generators sell electricity in wholesale auctions with oversight from the PUCT and ERCOT.
All these transactions depend on the local grid, which has six service territories, each with a single utility company. Unlike power generators and electricity retailers, the utility companies have exclusive service territories with no competition. However, the PUCT regulates utility delivery fees to ensure both fairness to customers and funding for grid maintenance.Before 2002, Texas had traditional electric companies that controlled all stages of the power supply: generation, transmission, distribution and retail sales. As a result, home and business owners had no choice but to buy electricity from their local utility provider. However, Texas deregulated its electric sector in 2002, breaking up power monopolies into companies with specific roles, while opening the market to competition.
- Power generators: Companies dedicated exclusively to electricity production
- Transmission and distribution utilities (TDUs): “Poles and wires” companies that operate and maintain the power grid
- Retail electricity providers (REPs): Companies that sell electricity plans directly to homes and businesses
In Houston, the utility company for most of the 20th century was Houston Lighting & Power (HL&P). After deregulation, HL&P was divided into an electricity provider called Reliant Energy, a utility company called CenterPoint Energy and a generation company called Texas Genco. Thanks to the general success of deregulation, you now have dozens of light companies to choose from.
In the Lone Star State, the Electric Reliability Council of Texas (ERCOT) manages the flow of electricity. Put in place to ensure a consistent, stable supply, ERCOT wrangles all the power plants, utility companies and electricity providers to ensure your lights come on when you flip the switch.
In this deregulated market, electricity providers compete for residential and commercial customers. Power generators sell electricity in wholesale auctions with oversight from the PUCT and ERCOT.
All these transactions depend on the local grid, which has six service territories, each with a single utility company. Unlike power generators and electricity retailers, the utility companies have exclusive service territories with no competition. However, the PUCT regulates utility delivery fees to ensure both fairness to customers and funding for grid maintenance.
How To Choose the Right Electricity Plan
We recommend fixed-rate plans as the best option for Houston residents, since they provide stable pricing and predictable monthly bills. However, here are some specific tips you can follow to find the best electricity plan for your home:
- Know your monthly electricity usage: Houston electricity providers list their rates for 500 kWh, 1,000 kWh and 2,000 kWh. If you know your typical energy usage, you can focus on comparing plans at the correct pricing tier.
- Understand the electricity facts label (EFL): Texas requires electricity providers to publish an EFL for every plan, explaining its base charges, rates and terms. Electricity providers often hide fees in marketing materials, but they must disclose all charges by law on their EFLs.
- Review the contract lengths available: Most electricity plans in Houston range from 12 to 36 months. Longer plans often come with lower rates, but they also tend to charge higher penalties if you cancel early.
- Understand the early termination fee (ETF): Most providers charge an ETF if you cancel a fixed-rate plan early. These can range from $99 to $395, although some providers charge a fee per month left in your contract.
- Watch out for deceptive “benefits:” Many Houston electricity plans offer genuine benefits like 100% renewable energy or autopay discounts. However, other plans include features, such as free energy periods or usage-based bill credits, which can lead to higher rates if you don’t meet specific conditions.
- Read provider reviews: Check a provider’s rating with the PUCT before signing up for any energy plan. We also recommend considering customer reviews from third-party platforms, such as Google Reviews. We’ve also developed a thorough provider review system using firsthand data from 1,600 Texans living in deregulated markets.
Types of Electricity Plans
You can find over 1,500 electricity plans across Texas, with around 300 options available in the Greater Houston area. Don’t let those numbers overwhelm you. Most energy plans fall into the six categories below.
- Fixed-rate plans: You’ll enjoy locked rates for your entire contract, offering price stability. However, watch out for ETFs if you switch or cancel before the contract ends.
- Variable-rate plans: Also called month-to-month plans, these have no long-term contract or ETF. However, its rate changes monthly, leading to unpredictable power bills.
- Bill credit plans: You receive monthly bill credits, often ranging from $30 to $150, if your consumption stays within an eligible range. However, you may pay over 20 cents per kWh if your usage doesn’t meet the account credit requirements.
- Time-of-use plans: These plans offer discounted rates during off-peak hours while charging high rates during peak times. Many of these plans even advertise free nights or weekends, but charge over 27 cents per kWh to offset the “free” energy.
- Green energy plans: These electricity plans contain 100% renewable energy, while most plans in Houston include less than 30% green energy. Renewable energy plans allow you to secure competitive rates while reducing your home’s emissions.
- Prepaid or no-deposit plans: These plans allow you to avoid a large upfront deposit or credit check. You’ll also pay in advance for any electricity you use, not unlike prepaying for minutes on a phone plan.
Green Energy Options in Houston
You might be surprised to learn that Texas actually provides the most renewable energy of any state in the U.S., according to the EIA. While most electricity plans in Houston contain around 33% renewable energy by default, you can find several green energy options in the market.
- 100% green energy providers: Gexa Energy, Green Mountain Energy, Rhythm Energy, Chariot Energy and Energy Texas all offer 100% renewable energy plans.
- Optional green energy upgrades: 4Change Energy, Veteran Energy and Reliant offer traditional plans with an optional upgrade to 100% green energy for a small monthly fee.
- Green and traditional energy options: TriEagle Energy, TXU Energy and several other light companies offer a combination of traditional and green plans.
Many Texans consider green energy an indulgence that comes at a premium. That, however, is no longer true. Because the Lone Star State has widely embraced wind, solar, and battery storage, many clean energy plans are as affordable as, if not cheaper than, traditionally-sourced electricity plans.
Business Electricity Rates in Houston
Business electricity plans in Houston typically offer lower rates than residential plans. The average commercial energy rate in Texas is 8.64 cents per kWh, while the average residential rate is 14.89 cents per kWh, according to the EIA.
If you’re shopping for a commercial electricity plan in Houston, the enrollment process depends on your company’s monthly bills and the number of power meters.
- If your business pays under $2,500 per month and has less than five power meters, you can choose an electricity plan online, just like a residential customer.
- You’ll typically need to contact electricity providers directly to request a quote if your business pays over $2,500 per month or has at least five power meters.
Making the Switch: How To Change Providers
Switching electricity plans in Houston and other deregulated cities can feel overwhelming, but with a bit of assistance can take just a few minutes.
- Visit Home Energy Club and input your ZIP code: Energy plans vary from town to town. Make sure you’re comparing plans that are available in your neighborhood. By comparing electricity plans using platforms like our partners at Home Energy Club, you to see options from multiple light companies.
- Filter options based on your needs: Use the filter options to compare plans based on usage level, plan type or provider.
- Choose a contract length: Most electricity plans in Houston have a contract term of 12, 24 or 36 months.
- Read the EFL: You can rule out plans with hidden fees, confusing rates or other unfavorable features by checking their EFLs.
- Sign up: Select the best plan for your Houston home and sign up. You’ll generally need to provide your address, start date and ID.
Many Houston providers offer same-day service if you sign up before a specified cutoff time. However, we generally recommend shopping at least 30 days before your contract ends to avoid any lapse in service. If you switch before your contract ends, you’ll owe an ETF, although you may find two main exceptions:
- Texas law exempts you from any cancellation fees if you switch plans while moving to another address.
- Some electricity providers offer a 30-day or 60-day trial period if you’re a new customer, where you can switch plans without paying the ETF.
Houston Power Infrastructure and Outages
CenterPoint Energy is the utility company that operates and maintains the power grid in most Houston ZIP codes. However, some southern areas of the Greater Houston region fall under the Texas-New Mexico Power (TNMP) service area. Regardless of your chosen electricity provider, your monthly bill always includes delivery charges from the local utility company:
- CenterPoint Base Charge: $4.90 per month
- CenterPoint Delivery Fee: 4.2392 cents per kWh
- TNMP Base Charge: $7.85 per month
- TNMP Delivery Fee: 5.7054 cents per kWh
In case of a power outage or other grid-related issues, contact the local utility company, not your light company. Check your monthly power bills to determine if your utility company is CenterPoint or TNMP.
Texas experienced major blackouts during Winter Storm Uri in February 2021, when freezing temperatures affected key infrastructure such as transmission lines, gas pipelines and wind turbines. To help avoid a similar event in the future, Texas has been weatherizing its power generators and grid infrastructure since 2021.
Frequently Asked Questions
What company has the cheapest electricity rates in Houston?
Gexa Energy, Frontier Utilities and 4Change Energy typically advertise the cheapest electricity rates in Houston. However, these ultra-cheap rates depend on usage-based bill credits that only apply within a specific consumption range. TriEagle Energy, Discount Power and Energy Texas currently offer some of the best rates on no-gimmick, fixed-rate plans in Houston.
What’s the best electricity company in Houston for homeowners?
TriEagle Energy is one of our top-rated electricity providers in Houston, with a score of 4.8 out of 5 stars in our review. TriEagle Energy offers affordable fixed rates, flexible cancellation fees and a 100% green energy plan option.
How much does electricity typically cost in Houston?
As of May 2025, the average electricity rate in Houston is 14.7 cents per kWh. However, you can find advertised rates ranging from 10.6 cents to 24 cents per kWh. The most affordable fixed-rate plans typically fall between 14.0 and 17.0 cents per kWh — lower rates usually come with gimmicks such as bill credits and time-of-use pricing that can lead to confusing, hard-to-predict monthly energy costs.
Why are electricity rates so high in Houston?
If you’re paying a high electricity rate in Houston, your plan may include pricing tricks such as high base charges, tiered pricing or time-of-use rates. Our energy experts recommend looking for fixed-rate plans below 17 cents per kWh with transparent pricing and no hidden fees. Also, be sure to check your contract. It’s possible that your previous energy contract expired, and you were placed on a holdover energy plan, a variable-rate plan with expensive costs.
Is Reliant Energy a good choice in Houston?
Reliant is a solid option if you’re looking for features like solar buyback programs, discounted EV charging rates or prepaid billing. Reliant earned top marks in our review, with a 4.9 out of 5 stars. However, it generally charges a premium for its energy plans. Providers such as TriEagle Energy and 4Change Energy usually offer more competitive prices than Reliant.
Our Rating Methodology
The This Old House Reviews Team supports our energy provider ratings and recommendations with a transparent, research-backed methodology. Our process includes surveying electricity customers in deregulated markets like Texas, analyzing customer review trends, conducting mystery shopping, and consulting with energy experts. Each provider is scored based on performance in customer satisfaction, loyalty, digital experience, and service quality to produce a final rating on a 5-point scale.